I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

The Importance of Binding Death Benefit to Your Superannuation

Remember to be paid out. It would depend on the balance as is the date of death, together with any life insurance cover that you may have to the superannuation fund.

Where the benefit gets paid, depends on what you would advise the superannuation fund. The death benefit is paid for your estate and distributed by your will, or to your dependents such as your spouse or children.

Blinding Death Benefits

You have to complete what's called a binding death benefits nomination form, which enables you to advise a superannuation fund to where you like your super benefit to be paid on your death. Whether it's tax payable on the benefit, will depend on who receives the benefit.

There are two types of beneficiaries. First we have dependents, and these include spouses, former spouses, children under eighteen or any person who is financially dependent on the deceased. A non-financial reliant on the other handovers all the other benefits.

A beneficial who is a dependent as a general rule receives death benefit tax-free. Whereas a non-dependent many need to pay tax on any amount after they receive the benefits.

In summary, you need to consider:

• What type of death benefits nomination should be completed?
• How can the benefits be received (either the lump sum or income stream)?
• And will the nominated beneficiary be considered to be a financial dependent or not?
• What tax implications will there be?

A simple solution that many people adopt is to withdraw their money from superannuation before they arrive at the cemetery. But for those who die suddenly, then you may lose the opportunity. A wrong decision will be costly. So taking advice from professionals such as our own at www.australiansuperfinder.com.au is very important. You can opt for a free consultation by calling this number - 1300 252 167. Good luck!

Loading PLease Wait..